A firm gives discounts to its customers who pay their bills on time. A customer receives a ten percent discount on the next invo
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Answer:
a) The value of the sample mean is 50
b) (38.02, 61.98) is the 95% as it covers more values than the other.
Step-by-step explanation:
a) Upper and lower values for the confidence intervals are at the same distance from the mean, as they represent an upper and lower limit for the value, and the most probable value is the one in the middle, which, in a normal distribution is the mean.
As they derive from the same data, both pairs of values should give us the same mean:
b) The percentage of the confidence interval tells us which is the area below the bell curve (of the normal distribution) between the limits given.
One could give a value with a 100% CI, but limits should be minus and plus infinity, and as the interval gets smaller, less values are covered (less area), and less certain we are about our value being inside the interval.
Then, we can say that the widest interval must be the 95% CI, i.e. (38.02, 61.98).